NEW YORK ( TheStreet) -- Check your emotions at the door and don't fall in love with your stocks, Jim Cramer proclaimed to his "Mad Money" viewers Wednesday.

He was responding to ferocious criticism regarding Tuesday's recommendation to take profits in Arena Pharmaceuticals ( ARNA).

Cramer said emotions are ruling the day in today's markets and that goes against everything he's taught on "Mad Money." Stocks are only pieces of paper linked to companies, he reminded viewers, and are not worthy of any affection. Good investors are always skeptical and must always challenge their reasons for owning a stock.

Just as Cramer always says that "no one ever made a dime panicking," he also preaches the opposite, that "no one ever got hurt taking a profit." Stocks are still part of the overall market, which means even if they're terrific they can still go down. The holy grail of investing, said Cramer, is taking profits and playing with the house's money, a proposition where you simply can't lose.

"Diversification and dividends are your only friends," Cramer concluded, as gains in a market like this one are getting harder and harder to come by.

Executive Decision

In the "Executive Decision" segment, Cramer once again spoke with Vivek Ranadive, chairman and CEO of Tibco Software ( TIBX), the data analysis company that's helping retailers and enterprise make real-time sense of their "big data."

Ranadive said that while it may be a slow slog for most of technology it's "the best of times" at Tibco. He said that even in ailing Europe business is up 20% and the company is making big inroads into banks, sports retailers and drug companies across the continent. According to Ranadive, Tibco software is a "must have" for business.

Ranadive explained that Tibco helps companies manage their social network, their customers. The company's real-time analysis software allows customers to capture, expand, engage and monetize their customers in ways never seen before. Loyalty programs are one hot area for Tibco where it manages the purchase history for 260 million customers, allowing companies to up-sell and cross-sell while customers are still shopping. In short, Tibco helps make customers happy, said Ranadive.

Cramer said Tibco continues to do well and is at the top of its game.

Know Your IPO

In the "Know Your IPO" segment, Cramer said the initial public offering drought may be coming to an end after the disaster that was Facebook ( FB). The IPOs of travel website Kayak and network security purveyor Palo Alto Networks go public next week.

Cramer said the underwriter in both deals is the beleaguered Morgan Stanley ( MS), a firm that has no choice but to price these IPOs low enough to ensure a first day spike in price. Morgan Stanley can't afford another miss.

Kayak is a beloved travel website that offers the usual array of deals on airfare and hotels, but has an ad-supported model. Revenue at the company are up 30% year-over-year. Kayak plans to offer 3.5 million shares between $22 and $25 a share. That puts its valuation between 20 and 23 times earnings, inline with its peers.

Palo Alto Networks is a next-generation network security company that plans to come public between $34 and $37 a share, placing its valuation at five times sales.

In both cases, Cramer recommended investors get in on the IPO deal itself and sell those shares on the initial pop. "This is not a tech-friendly environment," Cramer reminded viewers, which is why flipping the shares on the first day of trading is the only move that makes sense.

Lightening Round

Here's what Cramer had to say about callers' stocks during the "Lightning Round":

Teva Pharmaceutical ( TEVA): "I like the new CEO but they still only have one really good drug. I don't want to buy it."

Peabody Energy ( BTU): "Stay on the sidelines. Coal is in secular decline."

Enterprise Products Partners ( EPD): "This is one of the best MLPs out there and I say buy, buy, buy."

Best Buy ( BBY): "No, too much money has been lost. I don't think a takeover is going to happen. I remain a seller."

Armour Residential ( ARR): "I think they're a safe play and I like them."

Ascena Retail Group ( ASNA): "I like this stock very much. I say buy, buy, buy."

Chesapeake Energy ( CHK): "I like the preferred shares a lot more than the common. I say buy the preferred and sell the common."

PolyOne ( POL): "This is a tough group but they buy a lot of natural gas and that's good. I also like PPG Industries ( PPG), which is a better company."

Am I Diversified?

In the "Am I Diversified" segment, Cramer spoke with callers and responded to tweets sent via Twitter to @JimCramer to see if investors' portfolios have what it takes for today's markets.

No Huddle Offense

In his "No Huddle Offense" segment, Cramer said that investors need to ask "What's expensive?". Not which stocks are too expensive, but which companies sell products that simply too expensive for this market.

With stocks like Tiffany ( TIF) and Coach ( COH) rolling over, Cramer said high-end retail has become more than just a Chinese problem, it's a global problem.

But Cramer went even further to warn investors to be cautious of companies such as Ralph Lauren ( RL), PVH ( PVH) and VF Corp ( VFC) as they, too, will likely be brought down by the weakness in the high-end segment, even though there's nothing wrong with their businesses.

At the time of publication, Cramer's Action Alerts PLUS had a position in AAPL, ABT, JPM and MCD.

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